TGT TARGET CORP

BULLISH Impact: 7/10 8-K
Horizon weeks Filed May 20, 2026 Processed 3d 14h ago SEC 0000027419-26-000020
8-K Item 2.02: Earnings release

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Executive Summary

Target reported Q1 2026 GAAP/Adjusted EPS of $1.71, beating consensus of $1.46 by 17%, on revenue of $25.44B (vs $24.66B consensus, +6.7% YoY). The company raised its full-year net sales growth guidance to ~4% (from ~2%) and guided EPS to the high end of the $7.50-$8.50 range, signaling accelerating momentum after a challenging 2025.

Key Financial Metrics

Guidance
~4% net sales growth vs 2025
raised
Free Cash Flow
-$319.0M
Gross Margin
29%

Actionable Insight

The Q1 beat and raised guidance represent a clear inflection point after a year of declining sales and earnings. With broad-based category strength, accelerating digital growth, and margin expansion, Target is regaining share. The raised FY guidance to ~4% net sales growth (from ~2%) and EPS at the high end of $7.50-$8.50 provides a concrete catalyst. Monitor Q2 for sustained comparable sales growth above 3% and further margin expansion to confirm the trend.

Key Facts

  • Q1 2026 GAAP/Adjusted EPS $1.71 vs consensus $1.46 (+17.1% beat)
  • Q1 2026 net sales $25.44B vs consensus $24.66B (+3.2% beat, +6.7% YoY)
  • Comparable sales grew 5.6% (traffic +4.4%, avg ticket +1.1%) vs -3.8% a year ago
  • Full-year net sales growth guidance raised to ~4% from ~2%
  • Full-year GAAP/Adjusted EPS guided to high end of $7.50-$8.50 range
  • Gross margin expanded 80bps YoY to 29.0% (28.2% in Q1 2025)
  • Digital comparable sales grew 8.9%; same-day delivery via Target Circle 360 grew >27%
  • Non-merchandise sales grew ~25% (Roundel ad revenue, Target Circle 360 memberships, marketplace)
  • All six core merchandise categories posted YoY sales growth
  • Operating cash flow $716M vs $275M a year ago (+160%)

Financial Impact

EPS beat of $0.25 (+17%) on $0.78B revenue beat (+3.2%) with raised guidance — strong positive catalyst for a $57.8B market cap retailer

revenueepscomparable salesgross marginguidance

Risk Factors

  • Uncertain consumer spending environment and potential tariff impacts on product costs
  • Higher SG&A expense rate (21.9% vs 21.7% adjusted last year) from compensation and marketing investments
  • ROIC declining to 12.4% from 15.1% a year ago, though partly due to business transformation costs
  • No share repurchases in Q1 despite $8.3B authorization — capital return below expectations

Market Snapshot

Exchange
NYSE
Sector
Retail-Variety Stores
Analyst Consensus
35% bullish (43 analysts)

Documents Analyzed

This report is based on 6 SEC documents filed with EDGAR.

DocumentAccession Number
8-K Filing (Primary)0000027419-26-000020
Document: tgt-20260520.htm0000027419-26-000020
Document: 0000027419-26-000020-index-headers.html0000027419-26-000020
Document: 0000027419-26-000020-index.html0000027419-26-000020
Document: 0000027419-26-000020.txt0000027419-26-000020
8-K Data (Synthetic)0000027419-26-000020
4 reports for TGT
Performance horizon

Track record builds as more directional reports settle.

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Reports for TGT — sortable, filterable
Type Now
May 20, 2026
3d ago
ANALYST-DOWNGRADE
MIXED ★ 4/10
$119.58 awaiting T+20awaiting T+20$125.60 (+5.04%)
May 20, 2026
3d ago
8-K
BULLISH ★ 7/10
awaiting T+20
May 1, 2026
22d ago
ANALYST-UPGRADE
BULLISH ★ 3/10
$120.06 $120.38▲ +0.27%▲ +4.68%$125.60 (+4.62%)
Feb 28, 2026
12w ago
Institutional Cluster
BULLISH ★ 7/10
$113.10 $118.69▲ +4.94%▲ +12.88%$125.60 (+11.06%)
Showing 4 of 4

US Market Status

Market Closed — Opens Tue (35h 16m)

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